QUESTION 22 The City of Fox is evaluating which of its funds it will present as a major fund in its fund financial statements on December 31, Year 1. The city presents the following partial listing of asset data at December 31, Year 1: Total Governmental Fund Type Assets $3,000,000 Total Enterprise Fund Assets 2,000,000 General Fund Assets 280,000 Community Development Special Revenue Fund 290,000 Sales Tax Special Revenue Fund 350,000 Faberville River Bridge Capital Project Fund 100,000 Faberville Water & Sewer Utility Fund 1,800,000 Faberville Landfill 200,000 Based purely on assets, how many funds should be displayed as major funds? Four Five Six O Three QUESTION 23 The Senior League, a not-for-profit welfare agency, redeemed a $100,000 bond that it had held as an investment of resources without donor restrictions. It also received an interest payment of $6,000. In its statement of cash flows, the league should report: $106,000 as a cash flow from investing activities $106,000 as a cash flow from operating activities $100,000 as a cash flow from investing activities and $6,000 as a cash flow from financing activities $100,000 as a cash flow from investing activities and $6,000 as a cash flow from operating activities QUESTION 20 RST Charities received equities securities valued at $100,000 as an unrestricted gift. At year end, the securities had a fair market value of $110,000. By what amount did these transactions increase RST's net assets? $100,000 $105,000 O $110,000 O $115,000 QUESTION 21 Polk County's solid waste landfill operation is accounted for in a governmental fund. Polk used available cash to purchase equipment that is included in the estimated current cost of closure and post-closure care of this operation. How would this purchase affect the asset amount in Polk's governmental capital assets and the liability amount in Polk's government-wide financial statements? Asset Amount Liability Amount Increase Decrease Increase No effect No effect Decrease No effect No effect